Natural Alternative Sweeteners Market By Type (Stevia, Coconut Sugar, Raw Honey, Blackstrap Molasses, Monk Fruit, Maple Syrup, Date Sugar, Xylitol and Others), By End-Use Industry (Food and Beverage, Pharmaceutical, Personal Care and Others) - Growth, Future Prospects and Competitive Analysis, 2017 – 2025

Natural alternative sweeteners, also known as sugar substitutes, are chemicals that are added to some food products to make them taste sweet with little or no calories. The overconsumption of sugary foods leads to weight gain, resistance to insulin, type 2 diabetes, and a fatty liver. Therefore, in a bid to satisfy consumers' sweet tooth without compromising their health, scientists and nutrition professionals have developed healthier natural alternatives to sugar. This has further led to the development of alternative sweeteners. Nowadays, these sweeteners are gaining wider demand owing to their nutrient content and positive health effects.

The demand for alternative sweeteners is gaining traction due to the rise in health concerns due to the overconsumption of sugar in regular diet patterns. Growing instances of diabetes and obesity are further motivating people to switch to low- or zero-calorie substitutes. This acts as a key factor in the development of non-nutritive sweeteners such as Stevia, monk fruit, agave nectar, and coconut sugar. In addition to it, the growing inclination of consumers towards "all-natural" and "clean label" food and beverage products also contributes to market growth. An increase in the adoption of alternative sweeteners in multiple applications such as dairy, confectionery, and breakfast cereals is also stimulating market growth. The rise in consumer spending ability for the purchase of convenience foods and ready-to-drink beverages has further raised the production of low-calorie-based products by end-use industries. However, the high costs associated with the manufacturing of these sweeteners are poised to deter market demand. Furthermore, the dislike of the licorice flavor of certain sweeteners such as Stevia is expected to have a negative impact on the market.

On the basis of type, the global market for natural alternative sweeteners is categorized into Stevia, coconut sugar, raw honey, blackstrap molasses, monk fruit, maple syrup, date sugar, xylitol, and others. Others include balsamic glaze, banana puree, lo, real fruit jam, and brown rice syrup. On the basis of end-use industries, the market is categorized into food and beverage, pharmaceuticals, personal care, and others. Stevia has captured a major market due to its growing consumption as a dietary supplement. The low calories and zero glycemic impact have further made Stevia favorable among diabetic patients, which is one of the key reasons for the spurt in market growth. On the other hand, the remedial advantages of honey have proven its benefits for flavor enhancements and other food products such as cookies or biscuits.

The global market for natural alternative sweeteners is segmented on the basis of geography into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. North America dominated market growth in 2016 as a result of the massive production and consumption of diet-carbonated soft drinks. Moreover, stringent taxation and regulations pertaining to the consumption of high-calorie foods in Europe and North America are further driving the adoption of sweeteners in these regions.

Some of the key players operating in the market include Cargill Incorporated, GLG Life Tech Corp., Zydus Wellness, Archer Daniels Midland Company, Merisant Worldwide, Hermes Sweeteners, Imperial Sugar Company, Herbevodia and Stevia Corporation, Naturex and Pure Circle.

On the basis of its type, the global market for natural alternative sweeteners is categorized into the following segments:

  • Stevia
  • Coconut Sugar
  • Raw Honey
  • Blackstrap Molasses
  • Monk Fruit
  • Maple Syrup
  • Date Sugar
  • Xylitol
  • Others (Balsamic Glaze, Banana Puree, Lo Han, Real Fruit Jam, and Brown Rice Syrup)

Stevia, also known as "sweet leaf" or "honey leaf," is a famous zero-calorie sweetener that is extracted from the Stevia rebaudiana plant, which is native to the South American region. Stevia is 200 times sweeter than sugar. In 2016, this segment accounted for the maximum share of the market and was expected to gain prominence in the forecast years due to the presence of glycosides, which are not easily metabolized in the human body. Therefore, Stevia does not release calories into human metabolism, and this is projected to be the major factor driving market demand. Industry players have heavily relied on Stevia to meet public demand for low-calorie foods. As per the WHO, the number of obese people across the world has reached approximately 600 million.

This has prompted consumers to reconsider their lifestyle and dietary habits, leading to market expansion. Moreover, industry players have incorporated a consumer-centric strategy of introducing a variety of beverages containing zero or no calories. For instance, Coca-Cola launched the "Taste the Feeling" campaign, which included beverages for different occasions containing Stevia as a sweetener because it has the property of reducing sweetness content by 37%. The coconut sugar segment is projected to witness significant growth over the forecast period owing to its increasing utilization as a substitute for brown sugar in food products. Moreover, its lower glycemic content offers a multitude of opportunities for key stakeholders in the near future.

On the basis of the end-use industry, the global natural alternative sweeteners market is categorized into the following segments:

  • food and beverage
  • Pharmaceutical
  • Personal Care
  • Others

In 2016, the food and beverage segment dominated the market and was expected to maintain its dominance during the forecast period. The World Health Organization (WHO) also recommends cutting sugar intake to less than 10% of calories. This regulation was formulated so as to promote consumers' use of healthy alternatives to sugar. Nowadays, sweeteners are playing a pivotal role in the food and beverage industry owing to their quality and consistency. Natural sweeteners have found increased demand in beverage concentrates and mixes, topping mixes, filling mixes, breakfast cereals, and bakery products. Natural sweeteners are also gaining traction as consumer-friendly products with the potential to replace 20–30% of sugars without compromising the taste of food.

Regulatory agencies such as the European Commission, the Food and Drug Administration (FDA), and the Food Safety and Standards Authority of India (FSSAI) have approved the use of stevia glycosides in food products. Moreover, the FSSAI has further approved the incorporation of Stevia in soft drink concentrates, carbonated water, and chewing gum. Apart from this, natural sweeteners such as honey and agave are also being adopted owing to the growing focus on clean-label food products. These are often used in combination with sugar, Stevia, and/or other sweeteners such as erythritol. This acts as a prime factor fueling the market's growth.

The pharmaceutical application is poised to be the fastest-growing segment due to the added advantages of sugar substitutes in dental care and assistance in the weight loss end-use industry. Alternative sweeteners, being tooth-friendly, are unaffected by the fermentation of dental plaque. Xylitol, for example, prevents bacteria from adhering to the surface of teeth, thereby preventing tooth decay. Furthermore, sugar alternatives also help to control blood sugar levels in diabetic patients. Collectively, the aforementioned factors are driving market growth in the years to come.

Frequently Asked Questions:

The market for Natural Alternative Sweeteners Market is expected to reach US$ XX Mn by 2025.

The Natural Alternative Sweeteners Market is expected to see significant CAGR growth over the coming years, at 5.2%.

The report is forecasted from 2017-2025.

The base year of this report is 2016.

Cargill Incorporated, GLG Life Tech Corp., Zydus Wellness, Archer Daniels Midland Company, Merisant Worldwide, Hermes Sweeteners, Imperial Sugar Company, Herbevodia and Stevia Corporation, Naturex are some of the major players in the global market.

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Published Date:  Nov 2017
Category:  Food & Beverage
Report ID:   58839
Report Format:   PDF
Pages:   120
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